10 Trade Myths Destroying American Jobs: Myth #7…100% of Labor Savings Are Passed on to Consumers

A key but often unspoken assumption in arguments for free trade is that 100% of the labor cost savings associated with moving production overseas are passed on to consumers. The argument goes like this: Sending jobs overseas is okay and actually good for the U.S. because it increases the standard of living for Americans because the goods are cheaper. In reality, however, companies make products in countries with lower labor costs to make more profits, not to offer American consumers lower priced goods. It is naïve to assume that 100% of the labor savings are passed on to consumers.

Global Trade Reality # 7: Not all labor savings are passed on to consumers

Solutionomics’ founder and Chief Solutions Officer “CSO” is not running for political office and is not associated with nor does he work for a political party. He is not a lobbyist and does not work for a corporate trade association or labor union. He is not being paid to sell a political or economic agenda, political party, individual or ideology. He is independent. He is a citizen just like you.
His primary goal is to create and promote specific, common sense, yet innovative solutions for improving our political and economic systems.
He has firsthand experience in economics, finance and political campaigns. This results in a uniquely comprehensive understanding of the nexus and workings of politics and economics.
He has worked for some of largest finance companies in the world and his clients have included some of the largest public pension funds. He has also been a Federal Reserve Beige Book contributor.